Bosch plans new automotive technology manufacturing plant in Russia

The Bosch Groupplans to establish a new manufacturing site for automotive technology in Samara, Russia. By 2015, the supplier of technology and services will invest some 40 million euros in the new location. The buildings constructed in this phase will cover some 15,000 square meters of floor space, and include manufacturing, administration, warehousing, technical infrastructure, and a cafeteria. The site itself covers a total of some 200,000 square meters. Construction work is set to start in the first half of 2013. Bosch plans to employ more than 500 associates in Samara by the end of 2017.

The company plans to locate the operations of three divisions at the new site: chassis systems control, starter motors and generators, and diesel systems. They will manufacture automotive technology such as antilock braking systems and alternators, mainly for local customers. These products will later be joined by starters and common-rail injectors for commercial vehicles. In making this move, Bosch is pursuing its strategy of further expanding the company’s global presence.

“For Bosch, Russia is an important growth market. In establishing a further local manufacturing site, we can make better use of the opportunities the Russian market offers, and thus extend our presence in eastern Europe,” said Gerhard Pfeifer, the president of the Russian regional company. “In addition, since it is located in the southern European part of Russia, Samara is a perfect base from which to serve our local customers.”

As was recently announced, the Bosch Thermotechnology division also plans new manufacturing plant at its existing location in Engels. The plant will make industrial boilers and wall-mounted conventional boilers. This represents a total investment of roughly 21 million euros. If all goes to plan, some 170 new jobs will be created by 2016. The Bosch automotive aftermarket, gasoline systems, diesel systems, and power tools divisions already have a presence in Engels. In addition the new company headquarters in Moscow is due to be completed in the second half of 2013. The company has invested more than 100 million euros in the building project.

Bosch has been present in Russia since 1904. This means that Russia was one of the first countries outside Germany in which a sales organization was established. Today, the Bosch Group manufactures power tools, auto parts, gasoline systems, packaging technology, and household appliances at locations in Engels, Tolyatti, and St. Petersburg. In 2011, the company’s more than 2,700 local associates generated sales of nearly one billion euros in the Russian market. Following Engels, Samara will be the second Bosch plant to manufacture automotive technology in Russia.